client being counseled

James Cragg article

 

santa monica daily press

Small Businesses Schooled at SMC

The following article, by staff writer Melody Hanatani, was printed Aug. 8, 2007 in the Santa Monica Daily Press. It is reprinted with permission.

James Cragg's S.O. Tech manufactures customized mlitary gear. A little bit of skill in threading a sewing needle and a whole lot of marketing IQ has proved to be a winning formula for James Cragg.

James Cragg's S.O. Tech manufactures customized military gear

For the past 10 years, the Army Reserve captain has made a living selling customized military search and rescue clothing and gear, sewing vests and backpacks from his brother's home in Encino.

It wasn't until earlier this year when Cragg enrolled in marketing course at SMC's Small Business Development Center that the company took off, growing in sales by about 520 percent to approximately $13 million and increasing its personnel by about 180 percent.

The success story of S.O. Tech, which stands for Special Operations Technologies, has been one of the biggest highlights of the Small Business Development Center since it opened in January 2006.

Located at the Santa Monica Airport, the Small Business Development Center provides counseling and assistance for start-ups and aspiring entrepreneurs, offering tips on how to successfully manage a new business.

The concept for S.O. Tech came to Cragg in the 1990s after he left active military duty for contracting malaria while working overseas in a refugee camp. He began sewing and customizing gears for his friends in the military and the hobby slowly grew into a business, officially launching in 1997.

The company customizes and designs backpacks, harnesses and swings for search and rescue operations for military and law enforcement.

SO Tech - sewing

Two years after launching, Cragg began seeking the help of the Small Business Development Center in Santa Monica, enrolling in seminars covering topics such as starting a business and learning about state and federal laws. The center at the time was not operated by SMC.

“When you go into business and you go in alone...you really have very little structure and guidelines on what to do whereas when you go to the military, there are a million regulations and there are people telling you how to do things,” said Cragg, who lives in Hermosa Beach.

He continued returning to the center throughout the years, retaking courses to see if there were any new business trends.

It was after the most recent visit at the beginning of 2007 that led to the expansion of S.O. Tech, adding 28 new products including women's fashion and accessories for recreational equipment such as surfboard bags and backpacks.

“We're trying to translate that technology into something that would help everybody in their everyday life,” he said.

But what has really allowed growth is a new contract that the company recently secured with the federal government, supplying medical equipment to the entire operations company, Cragg said.

Over the past 10 years, the business has moved out of the home in Encino to a small factory in Los Angeles, expanding to a factory in Carson.

Since its opening, thousands of people have taken workshops offered at the Small Business Development Center, covering topics like business law and marketing. The center is currently working with about 600 clients, teaching them the basics of business law, marketing, sales and accounting, said Tricia Ramos, the director of the SBDC.

“There are certainly other success stories we've been able to brag about,” Ramos said. “His is the most highlightable because of the contracts he's received since he's got help from us.”